Aim- and TSX-V-listed Thor Explorations has signed a binding sale and purchase agreement with its Douta project joint venture (JV) partner International Mining Company (IMC) to acquire IMC’s entire outstanding 30% economic interest in the Douta gold project, in Senegal, thereby moving Thor’s interest in Douta from 70% to 100%.

The acquisition will be subject to the completion of certain conditions precedent including final approval from that country’s Minister of Mines.

The total consideration is a cash payment of $3-million and a 1.5% net smelter return (NSR), with 50% of the cash payment payable on signing and the rest on completion. The NSR is capped up to a maximum of $60-million.

In addition to the acquisition, Thor has also acquired an initial 65% interest in the Bousankhoba exploration permit EL02254.

Bousankhoba is an early-stage gold exploration permit located contiguous to the east of the company’s Douta West permit.

Extensive first stage exploration completed over Bousankhoba has identified numerous geochemical targets associated with a major shear zone over an 18 km strike length, Thor points out.

Two prospects, Massa Massa and Sekhoto, are located along this zone. An additional prospect known as the Sakhofara is located 7 km east of Massa Massa in the northern part of the permit and is defined by a 3.5 km north-east trending geochemical anomaly.

Historical early-stage drilling carried out by the prior owners of the licence has only tested the Sekhoto prospect, producing encouraging results including 10 m at 3.6 g/t gold and 2 m at 52 g/t gold, Thor highlights.

The terms of the Bousankhoba earn-in include a minimum exploration programme over 24 months and an earn-in payment of $160 000, payable within the first six months of signing.

Thor president and CEO Segun Lawson highlights a “compelling” strategic rationale for the acquisition, with the Douta project prefeasibility study (PFS) at an advanced stage.

“This is a project we are very much looking forward to building. Owning it on a 100% basis allows for an efficient development process and full exposure to the project economics prior to the government’s 10% free carried interest,” he says.

“We are also delighted to have completed the acquisition of a 65% JV initial interest in the Bousankhoba permit. This permit increases the footprint of the Douta project for regional exploration. Historical drilling at Bousankhoba shows encouraging mineralisation that potentially could be extensions to mineralisation being presently tested at Baraka 3.

“We are positioned to deliver the Douta PFS in quarter four [of this year] on a 100% ownership basis, with significant exploration upside potential and providing us with an expanded project and exploration footprint in Senegal,” Lawson avers.